TAP & Brothers Third-Quarter Budget Data Credit Sales Credit Purchases Wages, Taxes, and Expenses Interest Equipment Purchases July 251,823 97,509 26,227 7,133 54,264 August 261,880 287,790 111,009 31,262 7,653 September 61,225 134,834 33,240 7,902 0 The company predicts that 4% of its credit sales will never be collected, 30% of its sales will be collected in the month of the sale, and the remaining 66% will be collected in the following month. Credit purchases will be paid in the month following the purchase. • In June, credit sales were $138,299, and credit purchases were $102,236 • July's beginning cash is $184,861 If TAP maintains a policy of always keeping a minimum cash balance of $75,000 as a buffer against uncertainty and forecasting errors, what is the cash surplus/deficit at the end of the quarter (i.e., end of September)? (Answer surplus as a positive number or deficit as a negative number. Round answer to 0 decimal places. Do not round intermediate calculations)

TAP & Brothers Third-Quarter Budget Data Credit Sales Credit Purchases Wages, Taxes, and Expenses Interest Equipment Purchases July 251,823 97,509 26,227 7,133 54,264 August 261,880 287,790 111,009 31,262 7,653 September 61,225 134,834 33,240 7,902 0 The company predicts that 4% of its credit sales will never be collected, 30% of its sales will be collected in the month of the sale, and the remaining 66% will be collected in the following month. Credit purchases will be paid in the month following the purchase. • In June, credit sales were $138,299, and credit purchases were $102,236 • July's beginning cash is $184,861 If TAP maintains a policy of always keeping a minimum cash balance of $75,000 as a buffer against uncertainty and forecasting errors, what is the cash surplus/deficit at the end of the quarter (i.e., end of September)? (Answer surplus as a positive number or deficit as a negative number. Round answer to 0 decimal places. Do not round intermediate calculations)

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 5P: Selling and administrative expense budget and budgeted income statement Budgeted selling and...

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